What is an online loan?

An online loan is a personal loan that offers speedy approval and needs minimum documentation. The digital way of taking loans is highly convenient as compared to traditional banking methods. 

You can apply for an instant personal loan without visiting banks or filling out forms using a personal loan app. It saves yours as well as the lender’s time. 

Also termed as instant loan, personal loan, quick loan, or cash loan, an online personal loan has become India’s favorite for borrowing in the past few years. 

Young working professionals see online personal loans as the best option to fulfill their day-to-day and emergency needs. You can take an online loan starting from ₹5,000 up to ₹5 lakh for a period of 3 months to 60 months from PaySense.

Features of an online personal loan app

The need for money is increasing with the increase in demands. Funds are required whether you have a medical emergency or want to buy a house or a car. An online personal loan app can help you borrow much-needed additional money easily.

Below are some of the top features of an online personal loan app:

  • You can check your eligibility for the loan on the app itself
  • How you use the loan is entirely up to you
  • Using an online personal loan app is hassle-free and straightforward, with easy-to-follow instructions and a user-friendly interface.
  • The loan amount approved is disbursed directly into your bank account
  • Submission of required documents is online using the app
  • The loan app alerts you before your EMI due date
  • The entire loan application process is online without you having to visit any bank branch
  • Even people with no credit history can apply for a loan on a loan app
  • The personal loan offered on a loan app is fast and convenient

Benefits of using an online personal loan app

The loan availing process is much shorter with personal loan apps as compared to traditional banks and lenders. You can avail of a personal loan online with a hassle-free process using a loan app.

Below are some of the top benefits of using an online personal loan app:

  • It takes around 15 to 20 minutes to apply for a loan
  • It takes a single day for loan apps to approve your loan application
  • You can choose from multiple loan apps available on Google Play Store
  • Whether salaried or self-employed, you can apply for a personal loan over a loan app
  • You can apply for a personal loan from anywhere in the world
  • Loan apps use safe and secured processes, and so your data is safe with them
  • You don’t have to involve anyone as the loan application on a loan app is completely private
  • You can apply for a loan at any hour of the day
  • The online loan apps can’t recollect the money when your bank account is out of funds as the lenders only have read-only access to your statements
  • The interest rates of loans offered by loan apps are low as these are short-term loans
  • Only basic documentation is required to avail of the online loan

How to single out the best online loan app in India?

Below is how you can single out the best online loan app in India:

  • Choose a loan app that offers loan amount and loan tenure befitting your needs. The loan amount offered by online lenders differs from app to app. However, it generally ranges from ₹5,000 to ₹5 lakhs. Also, check the tenure provided by the loan apps. It usually ranges from 3 months to 60 months.
  • Check if you are eligible to take a loan from the loan app. It is essential to check for your loan eligibility before applying for a personal loan over a loan app. Most loan apps need you to be an Indian above 21 years of age, salaried or self-employed. Also, check the minimum monthly income required to avail a loan.
  • Check how your credit history will affect your loan with the lender. Some loan apps may need you to have a good credit score. So, if you have a poor credit history, opt for a loan app that doesn’t consider your credit history in depth. 
  • Check if the loan app and its parent company are credible. After checking your loan requirements, check if the loan app is credible. Make sure the app or its company is state-regulated. You can also see which companies are backing the app.
  • Check the exact number of days the app takes to disburse a loan. Your primary need from an instant loan app might be your need for quick cash. So, by taking a personal loan online, you must get the money fast for your immediate purpose. Choose a loan app that offers quick approval and fast disbursal.
  • Compare and see if the loan app is offering a competitive interest rate. Your loan interest rate depends on the loan amount. However, the interest rates differ from app to app. PaySense offers personal loans with an Annual Percentage Rate ranging between 16% and 36% on a reducing balance basis. 

Anil Sumra

Anil Sumra is a Digital Marketing Expert with more than 10 years of experience. He loves to write on various financial topics online to create financial awareness. He holds a bachelor’s degree in Finance & Management.

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